How does a transaction get into the blockchain?

  • A transaction is requested and authenticated
  • A block representing that transaction is created
  • The block is sent to every node (i.e. participant) in the network
  • Nodes validate the transaction
  • Nodes receive a reward for Proof of Work, typically in cryptocurrency
  • The block is added to the existing blockchain
  • The update is distributed across the network
  • The transaction is complete